BRIGHTER BEHIND THE CLOUDS LIMITED

Executive Summary

Brighter Behind The Clouds Limited currently shows a healthy financial position typical of a well-managed micro-entity start-up. Positive working capital and net assets indicate strong liquidity and solvency, with no immediate financial distress. To ensure sustained financial health, the company should focus on cash flow management, profitability, and prudent growth.

BRIGHTER BEHIND THE CLOUDS LIMITED - Analysis Report

Company Number: 15157069

Analysis Date: 2025-07-29 18:03 UTC

Financial Health Assessment for Brighter Behind The Clouds Limited

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1. Financial Health Score: B

Explanation:
The company demonstrates a sound financial position for a newly incorporated micro-entity. It has positive net assets, healthy working capital, and no overdue filings, which are strong "vital signs" of early-stage financial wellness. The score is not an A due to its very recent establishment, limited operating history, and modest asset base which leave some uncertainties about sustained cash flow and profitability.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	579	Minimal investment in long-term assets, typical for a start-up micro business.
Current Assets	10,851	Primarily cash and receivables, indicating some liquidity cushion.
Current Liabilities	2,772	Short-term debts are manageable relative to current assets.
Net Current Assets (Working Capital)	8,079	Comfortable positive working capital showing ability to cover short-term obligations.
Net Assets (Equity)	7,818	Positive net worth reflecting shareholders' funds after liabilities.
Average Number of Employees	1	Very small scale operation consistent with micro entity status.
Filing Status	Up to date	No overdue filings; compliance is timely, reflecting good governance.

Interpretation:
The company’s financial "vital signs" reveal a healthy cash position and prudent management of liabilities. Positive net current assets indicate a "healthy cash flow" potential, essential for operational stability. The modest fixed assets base suggests limited capital expenditure, which is typical in early stages.

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3. Diagnosis

Brighter Behind The Clouds Limited is in the early "growth phase" of its business lifecycle. The financial statements show a stable foundation with no signs of financial distress or liquidity issues. The positive net assets and working capital imply the company can meet its short-term obligations comfortably, a key symptom of sound financial health.

The company’s small scale and recent incorporation mean it has yet to build a track record of profitability or significant asset accumulation. Nonetheless, the absence of overdue statutory filings and the director’s full ownership and control indicate strong governance and decision-making clarity.

Given its status as a micro-entity, the financial data is limited but sufficient to conclude there are no immediate red flags such as negative net assets, excessive liabilities, or compliance problems.

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4. Recommendations

To maintain and improve financial wellness, the company should consider:

• Cash Flow Monitoring: Maintain vigilant oversight of cash flow, especially as business operations scale. Early-stage companies are vulnerable to cash shortages despite positive working capital.

• Build Reserves: Gradually build retained earnings to buffer against unforeseen expenses or downturns. This will strengthen net assets and resilience.

• Profitability Focus: Aim to generate consistent profitability through efficient cost management and revenue growth to transition from a start-up phase to sustainable operations.

• Governance & Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain trust with stakeholders.

• Growth Planning: Evaluate investment in fixed assets or staff strategically to support growth without overextending resources.

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